SK Inc., the holding company of SK Group, said Wednesday it would launch a tender offer for 16.43 million shares in SK ecoplant, moving to make the affiliate a wholly owned subsidiary and bring its long-running initial public offering plan to an end.
The company's board of directors approved the tender offer to address concerns that a separate listing of SK ecoplant could weigh on the parent company's valuation and erode shareholder value.
The offer will run from Thursday through Nov. 24, with payment made in cash. SK Inc. is seeking to acquire 16,434,638 shares, equivalent to about 25 percent of SK ecoplant's total shares outstanding.
The offer price is set at 88,000 won ($65.70) per share, representing a premium of about 53 percent over the stock's average price of roughly 57,500 won on the Korea over-the-counter market over the past month. The price was determined by an external accounting firm based on an assessment of the company's asset value and future earnings potential.
NH Investment & Securities will serve as the lead manager for the tender offer. Shareholders wishing to participate can submit their applications at the brokerage's branches or through its website, home trading system or mobile trading app.
After the tender offer, SK Inc. plans to acquire any remaining shares through a comprehensive share exchange, with shareholders receiving cash in exchange for their holdings, to secure full ownership of SK ecoplant.
The move marks the latest step in a portfolio restructuring effort that SK ecoplant has pursued over the past three years. The company had been preparing for an IPO since around 2022, but the plan is now being shelved amid the government's tougher stance on subsidiary listings and growing market concerns over the practice.
SK Inc. has been reshaping SK ecoplant's business portfolio, shifting its focus toward semiconductor and artificial intelligence infrastructure. In April, it invested approximately 400 billion won to acquire shares held by financial investors, raising its stake to about 74 percent of voting rights, or 71.2 percent of the company's total shares outstanding.
"By offering a premium over the K-OTC market price, we aim to give minority shareholders an opportunity to exit their investments while addressing concerns over a separate listing of SK ecoplant and strengthening confidence in the capital market," an SK Inc. official said.
"With SK ecoplant becoming a wholly owned subsidiary, we will strengthen its competitiveness across the semiconductor and AI value chains and translate the resulting gains into greater shareholder value at SK Inc.," the official added.
yeeun@heraldcorp.com
